by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
THQ shares are posting a fat gain today after the videogame company announced that it has completed a previously announced cost-reduction plan designed to chop its annual spending by $220 million.
THQ CEO Brian Farrell said in a statement that the company’s goal is to return to profitability and generate positive cash flow in the March 2010 fiscal year, and to position the company for long-term sustainable growth.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Have THQ shares gotten too cheap?
That’s the underlying question in a research note this morning from Citigroup’s Brent Thill. On the surface, he hardly sounds positive. The company’s upcoming UFC 2009 Undisputed has been generating a good amount of buzz in the gaming community around its spring release, and its game, Warhammer 40,000: Dawn of War II, is selling well, but Thill still maintains a hold rating on the company’s stock.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Comments from Merrill Lynch analyst Justin Post this morning are affecting the outlook for videogame stocks. Post cites data that indicate a drop in consumer spending in November–and he states that even though Merrill’s overall thesis is that the videogame category will remain strong, pricing pressure and the reality of the unfolding economic downturn dictate a more cautious view.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Videogame publisher THQ saw its shares take a dive this afternoon after failing to meet its previous forecast and providing weak guidance for the next fiscal year. The failure was largely due to poor sales and multiple returns of its Wall-E game. The company will close five studios and cut marketing and general expenses as a result.
by Eric Savitz, Blogger and Columnist, Barron's, Tech Trader Daily
Kaufman Brothers analyst Todd Mitchell this morning raised his ratings on Activision Blizzard (ATVI), Electronic Arts (ERTS) and THQ (THQI), While Mitchell also is cutting estimates and price targets for the stocks, he thinks they are “oversold in a tough market.”
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